And... They're Back: Microsoft And Yahoo Talking Again

from the a-little-shove-from-Icahn dept

Amazing what a little shove from Carl Icahn can do. Microsoft admitted on Sunday that it's submitted a new proposal to Yahoo, though not an acquisition of the entire company. Without any additional details, it's difficult to know if this actually makes any sense for anyone involved, but it does show that this whole exercise is far from over. The rumor right now is that it involves Microsoft taking over Yahoo's search-related text advertising business, which Yahoo has been considering handing over to Google. Yahoo would retain its display advertising business and its other properties like Yahoo mail and instant messaging. In many ways, this makes sense. Yahoo has never been strong in search advertising, and such a deal would let it concentrate on stuff that it actually does better.

Stating the Obvious

It doesn't take much common sense to know that a significant segment of Yahoo's users do not like or trust Microsoft and that if Microsoft gets involved with Yahoo, many of these users will abandon Yahoo like rats jumping off a sinking ship.

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